Bitcoin price just created a death cross from a 50-day and 200-day moving average, a sign that traders often see that the asset in question is in an unhealthy state and may see it even more negative.
However, Bitcoin is not typical, and when this event happened last, the leading cryptocurrency by market value broke a record for the third-largest single-day pump. What is going on this time?
Bitcoin Price Creates Death Cross, Another Record Breaking Pump Coming?
The recent price action caused the Bitcoin price to drop so deeply that the first cryptocurrency created another death cross – the third of the current bear market of the asset.
A death cross occurs the short-term moving average, in this case, when the 50-day moving average passes the long-term moving average, such as the 200-day moving average.
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This indicates to investors that the bullish trend of an asset is beginning to decrease and may see a long downtrend in the future. It is also a sign that the long-term health of the asset is in danger and triggers investors to sell.
However, in Bitcoin and cryptocurrencies, markets and investors do not behave as usual, and for the last time, the cross of death is putting the price of Bitcoin from $ 7,200 to $ 10,500. took place in the days leading up to the "China pump" rally. Less than 48 hours.
The rally broke a record to determine the third largest single-day earnings in the asset's short, ten-year long history. Not bad for an event expected to indicate death for an entity.
Before the historic “Xi pump”, Bitcoin price formed another death cross in late March 2018, then rose from “death” in the Easter market and went to a powerful rally.
None of these powerful rallies continued, giving death cross-confidence as an ominous signal that investors clearly paid attention to.
Want to Do Gold Criss-Cross… Pump, Pump
It is important to note that these moving averages tighten and get closer than usual.
At the end of May 2019, Bitcoin formed a golden cross. After the "Chinese pump" death cross, the Bitcoin price created another gold cross as the asset dropped from $ 10,000 at the end of February just before the panic-selloff, which was launched two weeks ago.
We cast gold cross and death cross pump 😂
– What's in your name (@Ridewithmebit) March 25, 2020
Now, another death cross has formed, but when the moving averages are too tight, even just a small rally would put another gold cross on the table.
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When the moving averages are combined in this way, it may be a sign that a long-term trend change is continuing and this moving average may begin to turn into support that takes Bitcoin to the next-all-time high.
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